CMS Announces Six-Month Moratorium on New Medicare Enrollments for DMEPOS Suppliers
On February 25, 2026, the Centers for Medicare & Medicaid Services (CMS) announced a six-month national freeze on new Medicare enrollments for specific Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers. This moratorium is set to commence following its publication in the Federal Register on February 27, 2026.
Under section 1866(j)(7) of the Social Security Act and federal regulations at 42 C.F.R. § 424.570, CMS has enacted this temporary enrollment suspension. The moratorium specifically targets new enrollment applications and changes in majority ownership for businesses primarily providing DMEPOS supplies.
Medical supply companies targeted include those primarily supplying DMEPOS either directly to beneficiaries with medical orders, to medical providers and suppliers, or both. It excludes entities like grocery stores, pharmacies, hospitals, and medical practices where DMEPOS supply is not their main function.
Impact on Medicaid and CHIP
Importantly, this moratorium does not extend to Medicaid and the Children’s Health Insurance Program (CHIP), allowing states to decide independently whether to implement similar measures locally.
Regulatory Compliance and Operational Adjustments
The regulation at 42 C.F.R. § 424.570 indicates that a temporary moratorium does not impede changes like practice location shifts, supplier information updates, or ownership changes unless they require a new Medicare enrollment due to a majority ownership change. DMEPOS suppliers, starting January 1, 2026, are subject to a 36-month rule for significant ownership change per 42 C.F.R. § 424.551.
From an operational standpoint, the forthcoming moratorium requires any new DMEPOS enrollment applications to be submitted before its effective date to avoid processing delays. Transactions triggering the 36-month rule, if filed post-moratorium implementation, will not be processed during the six-month period, potentially necessitating strategic adjustments.
Strategic Challenges for Suppliers
The moratorium's effects also impact the national DMEPOS competitive bidding for remote item delivery. Suppliers must ensure Medicare enrollment is complete to partake in bidding while meeting state licensure requirements. The need for additional practice locations could delay suppliers reliant on completing new Medicare enrollments before bid deadlines.
CMS may extend the moratorium for additional periods as needed, adding complexity to strategic planning for suppliers aiming to establish national distribution capabilities. This requires careful navigation of compliance and timing considerations within the industry.